Industry had a mixed response to this week’s 2026 Federal Budget with a number of new announcements winning approval including free access to Australian Standards.
Australian Institute of Refrigeration, Air Conditioning & Heating CEO, Sami Zheng, said there were a number of positive measures in the budget for the engineering sector and construction.
“Key announcements relevant for HVACR include free access to Australian Standards, something industry has been requesting for many years,” she said.
“This will help improve construction quality and compliance, reduce the risk of defects, and trim operating costs for the small and medium-size enterprises that comprise approximately 98 per cent of construction businesses.”
The budget allocated $42.7 million over four years in ongoing grants to Standards Australia to provide free public read-only access to standards referenced in Commonwealth and state and territory legislation.
Investment in the National Construction Code (NCC) won support including an AI-enabled pilot to improve use of the NCC.
“Just as important as making standards accessible is ensuring they are called up in legislation. Otherwise, they remain voluntary,” Zheng said.
“Currently, we have a fragmented system where some states are using old versions of the NCC and referencing superseded standards.”
The Budget contained important initiatives to strengthen the workforce through better licensing and skills recognition.
This included announcing a program of work to create a single national market for workers, including progressing national licensing, specifically noting electrical and engineering occupations as a priority.
“This will be beneficial for HVACR subcontractors who work in multiple Australian jurisdictions and have been subject to onerous costs and additional administrative requirements to comply with varying state and territory requirements and regimes,” Zheng said.
“AIRAH has long advocated for harmonised registration and licensing and we look forward to exploring how these initiatives can strengthen the HVACR workforce.”
One of the major issues for the construction, engineering and trades sectors has been the ongoing shortage of skilled workers.
The Budget highlighted the migrant workforce as a potential source of new trades workers, with funding for a new program of skills assessments for onshore visa holders, ensuring their existing qualifications and practical trade experience are recognised for the purposes of gaining employment and meeting workforce shortages.
Zheng said it appears the government has been listening to the voices of industry.
“When we see engagement on the National Construction Code or mutual recognition that results in action, it builds trust in government and gives industry a channel where we feel confident to give support. We are stronger working together,” she said.
Zheng applauded the $17 million to continue delivery of the government’s circular economy policy, as well as the larger investment of $97.2 million to the National Consumer Energy Resources Roadmap, including establishing a National Technical Regulator.
“We are keen to support this work, particularly in relation to appliances that help control loads, such as air conditioners and water heaters,” she said.
Areas the government neglected include the need to lift the quality and performance of Australia’s existing building stock.
“While the focus is understandably on new buildings, particularly housing, we know the biggest challenge to fulfilling our net zero commitments is in existing buildings,” she said.
AIRAH members were disappointed by the government’s continuing failure to recognise indoor air quality (IAQ) as a priority issue.
“Alongside the energy and thermal performance aspects of improving existing buildings, greater support for addressing indoor air quality is crucial,” Zheng said.
“IAQ cuts across health, education, commerce and quality of life. Investment in IAQ through improved measurement and tools, and embedding air quality standards in relevant codes and guidelines could make Australia more resilient, improve productivity and protect community wellbeing.”